Skip to content

NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Investor Grievances and Arbitration

Ms. Rao lost in arbitration before a panel of arbitrators at an exchange against her broker. She wishes to challenge the award. Which route is correct under the exchange arbitration framework?

Ms. Rao should file an appeal before the exchange's appellate arbitration panel within the prescribed time. This is the next tier of the exchange arbitration framework. Clearing corporations, depositories and a broker's compliance officer have no authority to review or set aside an arbitration award.

  1. AFile an appeal before the appellate arbitration panel of the exchange within the prescribed timeCorrect
  2. BAppeal directly to the clearing corporation's risk committee
  3. CRequest the depository to reverse the award
  4. DApply to the stock broker's compliance officer to set aside the award

Explanation

The framework provides a first-level arbitration, and an aggrieved party may appeal to an appellate arbitration panel of the exchange within the prescribed period (30 days from receipt of the award). Further recourse is to courts under the Arbitration and Conciliation Act. A clearing corporation risk committee, a depository or a compliance officer has no power to set aside an award.

Did you get it right without looking?

One question tells you little. A timed set on Investor Grievances and Arbitration shows your real accuracy, how long you take and where you lose marks.

Practise Investor Grievances and ArbitrationFree diagnostic mock

More Investor Grievances and Arbitration questions